HT010218

SEGMENT REPORT
LOOKING BACK
WHEN
SMALL
is
BIG
THOUGH FORMING ONLY A SMALL
SEGMENT OF THE INDUSTRY, SOFT
BRANDS ARE GAINING INTEREST AND
RAMPING UP DEVELOPMENT
BY ANDREA VICTORY
o most well-travelled guests
T
there used to be two kinds
of hotels: the reliable,
standard chain, and the
offbeat, quirky independent
hotel. However, as the
industry grows and changes, the line
is blurring between boutique hotels
and large, worldwide conglomerates.
A new kind of brand extension is
gaining popularity in the industry —
the soft brand.
ADVANTAGES OF SOFT BRANDS
In addition to the obvious opportunity
of portfolio expansion, one would
wonder why not just envelop the new
property into the fold and brand it as
suited? It turns out, there are many
advantages for large companies to
create and develop soft brands.
Brian Stanford, senior managing
director for CBRE Hotels, explains.
“From a brand perspective, it’s the ability
to continue to expand shelf space. In
other words, soft branding is one more
channel to bring more rooms into the
system.” He points out that from the
owner, operator or developer’s perspective,
soft branding allows the uniqueness
of the individual hotel to prevail
through its own name and branding,
letting the hotel owner or operator
benefit from the marketing power of
the major hotel company.
In essence, soft branding is a
win-win for both parties. The
chain can continue to expand and
the hotel benefits from the chain’s
systems through reservations, marketing
and business practices.
Ron Pohl, SVP and COO of Best
(top) Magnolia Bluffs (BW Premier Collection)
in Natchez, Miss.; Quattro Hotel &
Conference Centre, Sault Ste. Marie, Ont.
(Ascend Collection)
hoteliermagazine.com
JANUARY/FEBRUARY 2018 HOTELIER 45